Amazon buys LoveFilm
20th Jan 2011 | 10:05
Forms new digital download powerhouse
Amazon has reached an agreement to buy the share of LoveFilm it didn't already own.
In 2008, LoveFilm bought Amazon's UK and German DVD rental business and German markets and as a result Amazon became the largest shareholder of LoveFilm.
"LoveFilm has been innovating on behalf of movie rental customers across Europe for many years and with the advent of the LoveFilm player, they are further delighting customers by streaming digital movies for their immediate enjoyment," said Greg Greeley, Amazon's Vice President of European Retail.
"LoveFilm and Amazon have enjoyed a strong working relationship since LoveFilm acquired Amazon Europe's DVD rental business in 2008, and we look forward to a productive and innovative future."
Amazon has already got a strong connection with LoveFilm. But it is the digital arm which is bound to be the most lucrative in the coming years and this is what Amazon has surely got its sights on.
Deal is a winner
Simon Calver, Chief Executive of LoveFilm International, said about the news: "The deal is a winner for the members who love LoveFilm because of its value, choice, convenience and innovation in home entertainment.
"With Amazon's unequivocal support we can significantly enhance our members experience across Europe."
The actual amount of remaining shares bought to have the total company control was a cool 58 per cent, with the Guardian believing that this means Amazon has spent £200 million on the service.